Ruling Grand National Party leader Rep. Hong Joon-pyo has requested that President Lee Myung-bak consider increasing the welfare budget for ordinary citizens and levying heavier taxes for those in the top income brackets.

Hong made the request on Sunday as his party has been striving to come up with measures to support mid- and low-income citizens in efforts to win back their support and shake off its “wealthy, elitist image.”

The government, ruling party and presidential office are expected to hold a trilateral meeting to make their decisions over the issues, after the party workshop Tuesday over how to make a sweeping makeover of its policies and personnel.

The GNP has been considering creating a new tax band to levy 38-40 percent of income taxes for the richest citizens

The current top rate of income tax is 35 percent, applied to all those who earn more than 88 million won ($76,256). Critics have called the taxation rule unfair, as the same tax rate is applied to high-income clerical workers and conglomerate owners.

The party is also seeking to increase the budget for ordinary citizens suffering from unemployment, job insecurity and rising costs for child care and housing. It is considering setting aside some 3 trillion won from the state budget to improve the lives of ordinary citizens.

“We (Lee and I) discussed ways to increase the budget for ordinary citizens while taking caution not to undermine our financial soundness. We also discussed the need to create a new tax band in line with the changes in our times,” Hong was quoted as saying by GNP spokesman Rep. Kim Gi-hyeon.

Since the party suffered a major defeat in last month’s Seoul mayoral by-election, it has struggled to craft measures that could particularly appeal to ordinary citizens, so as to boost its chances in general and presidential elections next year.

By Song Sang-ho
(sshluck@heraldcorp.com)